According to this article, Karl Malone has informed Lakers management that he is not going to exercise his option for a second year on his contract. Thus, Malone is a free agent.

So... anyone thinking retirement is exactly what's going to happen? Or was this simply a business decision? Is Malone betting that Kobe won't be back and thus the Lakers will be able to offer Malone more money to return for the 2004-05 season?

For Malone to exercise his option would have been a terrible decision. Should he decide down the road that he wants to stay in LA for the money that deal would have paid him, I would imagine that option will always be there. At present, whether Kobe comes back is in question, whether Jackson comes back is in question, and whether the team can actually contend is in question. If Malone isn't retiring he'll either go get some more money, or he'll go somewhere with a chance to win for cheap to stay after the scoring record and the ring. None of those three options is facilitated by Malone picking up his option.

Originally posted by BigVitoMarkFor Malone to exercise his option would have been a terrible decision. Should he decide down the road that he wants to stay in LA for the money that deal would have paid him, I would imagine that option will always be there. At present, whether Kobe comes back is in question, whether Jackson comes back is in question, and whether the team can actually contend is in question. If Malone isn't retiring he'll either go get some more money, or he'll go somewhere with a chance to win for cheap to stay after the scoring record and the ring. None of those three options is facilitated by Malone picking up his option.

I think with the physical ailments, retirement is where he is leaning. Maybe if the Twolves or somebody knocked, he might consider it but I think he is done in LA.

Originally posted by SI.comKarl Malone became a free agent Wednesday by not informing the Los Angeles Lakers that he was exercising the option on his contract.

Why Wednesday, I wonder. Dont all the potential free agents (league-wide) become free agents on the same date, July 1?

All that means is that he told the Lakers of his plans ahead of time, which is almost a common courtesy in the NBA so that they can draft/plan/prepare to open their checkbook accordingly, with the news of that conversation leaking to the press.